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In the face of persistent economic turbulence, the National Insurance Commission (NAICOM) has spotlighted microinsurance and digital innovation as pivotal tools to extend pension access and financial protection to Nigeria’s informal sector.
Speaking at the recently held Ispenonline Retirement Summit in Lagos, the Commissioner for Insurance, Mr. Olusegun Omosehin, emphasized that overcoming retirement insecurity will require a comprehensive, inclusive, and forward-thinking approach. Omosehin, who was represented by NAICOM’s Lagos Director, Mr. Julius Odidi, addressed the summit’s theme, “Attaining Good Retirement Amid Economic Headwinds”, drawing attention to the need for tailored retirement solutions that address Nigeria’s shifting demographics and economic landscape.
According to NAICOM, Nigeria’s informal sector — which comprises a significant majority of the workforce — remains underserved in terms of retirement planning and insurance coverage. Microinsurance, a form of low-cost insurance targeted at low-income earners, could bridge this gap by offering flexible, affordable retirement and life insurance options.
“The industry must invest in designing affordable, relevant, and inclusive retirement products,” Omosehin said. “Microinsurance and digital platforms hold tremendous potential in this regard. We cannot build a resilient retirement system without informed and empowered citizens.”
He added that trust in financial institutions, enabling regulatory frameworks, and long-term value creation should be prioritized to mitigate the economic headwinds threatening retirement stability. This includes inflation, market volatility, and the growing cost of healthcare.
Omosehin outlined a three-point strategic plan for stakeholders in insurance, pensions, and financial services:
Policy Synergy: Ensure alignment across regulatory frameworks to prevent conflicts and inefficiencies in pension and insurance operations.
Inclusive Product Design: Develop microinsurance-based pension and annuity products specifically for informal sector participants.
Public Awareness: Promote early education on retirement planning, insurance, and risk management to create a culture of financial preparedness.
“These headwinds are not abstract—they affect millions of Nigerians who worry about the sustainability of their retirement income,” he said. “As regulators and stakeholders, we must respond with empathy, resilience, and innovation.”
The commission believes that products such as annuities, life insurance, and structured retirement savings plans should not be exclusive to the formal sector. Rather, they should be easily accessible and tailored to the income patterns of informal workers like market traders, artisans, and small business owners.
“The retirement conversation must be broadened beyond the elite,” Omosehin stressed. “It is a national concern requiring national commitment.”
He also noted NAICOM’s continued engagement with stakeholders to develop integrated frameworks that combine insurance and pension systems — particularly to tackle longevity risks and ensure post-retirement income security.
Echoing the commissioner’s position, keynote speaker and Founder of Mutual Specialists, Adetola Adegbayi, urged retirees and workers approaching retirement to seek professional advice on personal finance and risk management rather than fall prey to pseudo-investment schemes or high-risk ventures.
“Good retirement is a journey built on discipline and foresight,” she said. “Delay gratification, build reserves during active years, and invest wisely in bonds, real estate, stocks, and cash.”
Adegbayi advocated the 30-30-30-10 rule — allocating income toward living expenses, discretionary spending, savings, and debt repayment — and called for the institutionalization of a national wealth management initiative.
As Nigeria faces a rapidly aging population and uncertain economic conditions, the push to democratize retirement planning through digital microinsurance marks a transformative step. Industry observers say it also aligns with broader financial inclusion goals championed by the Central Bank of Nigeria and international development partners.
NAICOM’s stance signals a growing awareness among regulators that pensions must go beyond salary-based savings schemes and reach the millions operating outside the formal financial ecosystem.
In the words of Omosehin, “A secure retirement should not be a privilege; it must be a right anchored on inclusive policy and accessible financial solutions.”